Apartment prices in Dasan-dong, Namyangju, Gyeonggi, are rising sharply. A complex saw an exclusive 84㎡ unit sell at a price 265 million won higher than the previous transaction in just over 40 days. Sale prices for the same size in major complexes have also surpassed 1 billion won one after another. Analysts said demand has shifted to Dasan-dong, a non-regulated area, as nearby cities such as Guri were designated as regulated areas.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 6th, an 84.62㎡ unit at Dasan Xi Ivy Place sold for 1.325 billion won on July 30. Compared with the same dwelling type that sold for 1.25 billion won on July 9, the price rose 75 million won in 21 days. It was up 235 million won, or 21.6%, from the Jan. 14 transaction price of 1.09 billion won.
Completed in 2021, Dasan Xi Ivy Place is a mixed-use complex with seven apartment buildings totaling 967 households and one officetel building with 270 units. It is close to Dasan Station on Subway Line 8 and is considered the flagship complex of Dasan New Town.
A nearby 84.97㎡ unit at Dasan Lotte Castle also set a record for this dwelling type, closing at 1.245 billion won on the 21st of last month. That is 265 million won higher than the July 11 transaction price of 980 million won. In January, the same size mostly transacted in the mid-800 million won range.
Sale prices for 84㎡ units in other major complexes have also topped 1 billion won. An 84.96㎡ unit at e-Pyeonhansesang Dasan set a record at 1.15 billion won on the 14th of last month. An 84.96㎡ unit at Dasan Sininspil First River also reset its high at 1.045 billion won on the 28th of last month.
Analysts said tighter regulations on adjacent areas have influenced the rise in Dasan-dong home prices. Starting July 1, the government designated Dongtan-gu in Hwaseong, Giheung-gu in Yongin, and Guri as areas subject to adjustment and speculative overheating districts. These areas were also designated as land transaction permit zones starting July 5.
In regulated areas, the LTV cap for people without a home is limited to 40%. In contrast, in Dasan-dong, a non-regulated area, people without a home or owners of one dwelling on condition of disposing of the existing dwelling can receive an LTV of up to 70%. Unlike Guri, there is no need to obtain a land transaction permit, making the purchase threshold relatively low.
However, because Dasan-dong is in the Seoul metropolitan area, buyers who take out a mortgage to purchase a dwelling must move in within six months. Mortgage limits by home price also apply the same. Currently, the maximum mortgage for metropolitan area dwellings with a market price of 1.5 billion won or less is 600 million won. Because Dasan-dong is not a land transaction permit zone, if a buyer does not take out a mortgage, the buyer can purchase the home by assuming the tenant's jeonse deposit.
Kim Hak-ryeol, head of Smart Tube Real Estate Research Institute, said, "In Dasan-dong, buyers can purchase homes with a jeonse tenant in place, and its location allows commuting to Seoul via Subway Line 8, so prices have been rising quickly recently."
Nam Hyuk-woo at Woori Bank Real Estate Research Institute said, "With shopping facilities such as Hyundai Premium Outlet and living infrastructure in place, and with the Bukbu Urban Expressway nearby, transportation conditions are good," adding, "Demand is broadening because major complexes can still be purchased for under 1.5 billion won."